New Delhi: Billionaire Gautam Adani's takeover bid has taken New Delhi Television Ltd (NDTV) completely by surprise after India's richest man moved to claim the controlling stake of the leading TV channel.
As it tried to regain composure, NDTV on Thursday said Adani Group requires regulatory approve to buy its biggest shareholder, citing a November 2020 ruling from the Securities and Exchange Board of India (SEBI).
NDTV reasoned that the TV channel's founders Radhika and Prannoy Roy were barred from trading in securities markets that offers hindrance to the Adani Group's takeover bid.
It is known that Radhika and Prannoy Roy took a 4 billion rupee ($50 million) loan from firm VCPL over 10 years ago.
This was done in exchange issuing warrants allowing VCPL to buy 29.18% of the news group, according to a report in Reuters.
In a stealthily move Adani Group on Tuesday announced it acquired VCPL and claimed it is exercising those rights.
Sourcing legal experts, Reuters reported that Adani Group is well within its legal rights in the deal process, leaving NDTV limited options.
Another option before the owners is to make their open offer at higher price in its efforts to increase their stake.